Water will be scarce and food production, energy supply and migration patterns will change as the climate changes, in turn threatening businesses, according to Lloyd’s.

Its latest report predicts water-induced conflict between India and Pakistan; food security issues in China; energy security in the Arctic as melting ice caps deplete oil and gas resources; and migration problems faced by the US from Mexico.

Lloyd’s CEO Richard Ward says climate change will lead to greater competition for scarce resources and is likely to result in increased economic nationalism and greater global insecurity.

“Every organisation needs to have a clear understanding of its particular vulnerabilities and have in place a range of mitigation strategies,” he said.

But he says an understanding of the impacts of climate change could not only protect businesses from threats but also open up new opportunities.

“The private sector needs to support research on climate change, and develop and promote new technologies to mitigate and adapt to climate change,” Mr Ward said.